Contingent capital: the trigger problem
AbstractPrice triggers in contingent capital bonds are analyzed. Pervasiveness of multipleequilibria and nonexistence of equilibrium in theoretical models is illustrated. Evidence of these problems from market experiments is summarized. Possible solutions are evaluated.
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Bibliographic InfoPaper provided by Federal Reserve Bank of Richmond in its series Working Paper with number 11-07.
Date of creation: 2011
Date of revision:
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- NEP-ALL-2012-04-10 (All new papers)
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